Given the recent events for which I have provided a high level overview in my Financial Plans Should Account for Potential Major Mental Health Issues post, I have totally neglected this website. Now that matters have improved slightly I will endeavor to resume regular posts. In this regard, I provide an overview of the dividend income generated in the FFJ Portfolio during the month of June 2017. While this portfolio only represents a small component of our overall holdings, I think it is sufficient to demonstrate that a passive dividend income portfolio is:
- a wonderful way to enhance your personal net worth;
- can ultimately provide an "income safety blanket" once it reaches a reasonable value.
FFJ Portfolio Monthly Dividend Income
During the month of June, I received the commuted value of my defined benefit pension plan. After receiving a component in cash and the government taking its more than fair share, I was left with roughly $221,500 to invest in a locked-in self-directed Registered Retirement Savings Plan.
To date I have only deployed a small portion of the commuted value. I have acquired shares in Hormel Foods and J M Smucker. While the value of the J M Smucker shares has deteriorated subsequent to my purchase I am not concerned. I intend to hold these shares for many years to come. In fact, I may acquire more shares in the company.
I had my eyes set on other companies in which to invest but I have been out of the picture for almost a month. I will need to revisit my list of potential investments to ascertain whether valuation levels are reasonable.
I am a firm believer that if you invest in solid companies at reasonable valuation levels there is no need to actively trade stocks to enhance your wealth. Furthermore, there should be no need to continuously make investment decisions if you invest properly. As you can see, the dividends generated from all holdings within the FFJ Portfolio are automatically reinvested. This way, even during tumultuous times like those I have recently experienced, I am making new investments which will generate additional dividend income.
While Warren Buffett’s portfolio is far more significant in value than mine, I am comfortable in saying that I also have a “dividend snowball” which continues to grow as it rolls down a hill!
Note: I appreciate the time you took to read this post. As always, please send me any feedback and questions you may have.